Can We Cure Project Paralysis?

Cover Story

Can We Cure Project Paralysis?

Can We Cure Project Paralysis?

01 Mar 2020
Of 1,698 central-sector infrastructure projects worth Rs 1.50 billion and above, 578 projects have reported time escalations (or, in other words, delays), 400 projects reported cost overruns and 202 projects reported both time and cost overruns with respect to their original project implementation schedules, while 374 are on schedule, as in November 2019, according to the Ministry of Statistics and Programme Implementation (MoSPI).About 93 projects have reported additional delays vis-à-vis their date of completion reported in the previous month (October 2019). Of these 93 projects, 26 are mega projects worth Rs 10 billion and above.

In November 2019,the total original cost of implementation of the 1,698 projects was Rs 20.41 trillionand their anticipated completion cost is likely to be Rs 24.41 trillion, reflecting overall cost overruns of Rs 4 trillion (19.63 per cent of the original cost). The expenditure incurred on these projects till November 2019 is Rs 10.50 trillion, which is 43.01 per cent of the anticipated cost of the projects.

However, the number of delayed projects decreases to 484 if delay is calculated on the basis of the latest schedule of completion. Further, for 728 projects, neither the year of commissioning nor the tentative gestation period has been reported. Of 578 delayed projects, 190 (32.87 per cent) projects are experiencing an overall delay in the range of one to 12 months, 121 (20.93 per cent) projects in the range of 13-24 months, 146 (25.26 per cent) projects in the range of 25-60 months and 121 (20.93 per cent) are experiencing a delay of 61 months and above. The average time overrun in these 578 delayed projects is 38.84 months.

Our story in the January 2019 edition highlighted that of 1,420 similar projects, 385 were then on schedule, 366 projects delayed, 358 projects reported cost overruns, and 136 projects reported both time and cost overruns with respect to their original schedules. The number of delayed projects has evidently increased since then.

See the full Flash Report of the Ministry of Statistics and Programme Implementation as on November 2019 here!

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